Recent Development on Indonesia Economy and Competition Law / Policy

Transcription

1 /SOM1/CPLG/ Anda Item: Recent Development on Indonesia Economy and Competition Law / Policy Purpose: Information Submitted by: Indonesia Competition Policy and Law Group Meeting Hiroshima, Jan February-1 March

2 Mokhamad Syuhadhak, Secretary General, Commission for the Supervision of Business Competition, Republic of Indonesia Established by the Law Number 5/1999 concerning Prohibition of Monopolistic Practices and Unfair Business Competition Aimed to enhance healthy business and fair competition to increase public welfare

3 KPPU s Vision: To become an effective business competition supervisory ancy for improving people welfare KPPU s Mission: 1. Enforcing competition law. Internalizing competition values. Developing an effective and credible institution Enhancement of welfare improvement Public awareness, and behavioral chans

4 PERFORMANCE INDICATORS KPPU PROGRAMMES 1. Reduction tariff in several sectors (e.q. Telecommunication);. Ensure the availability of goods/services;. Increase quality of public services;. Increase transrency and competitive public procurement and license issuance. 1. Industrial research;. Policy evaluation;. Advocacy;. Policy advice and recommendation; 5. Law enforcement; 6. Cooperation and coordination between domestic and international institutions; and 7. Institutional development 5 Law Enforcement Competition Advocacy Fair Competition Institutional Development 6

5 Law Enforcement 7 Report and Complaint (-9) Written Report Official Report

6 Report Type based on Article Violation Allegation Cross-ownership (Article 7) 1 Inter-locked Directorate (Article 6) General (Article. 5) Other Conspiracy (Article, ) 6 Tender Conspiracy (Article ) 169 Market Dominant/ Discrimination (Article 19,, 1) Monopsony (Article. 1) Monopoly (Article. 17) 1 Ex clusiv e Agreement (Article 15) 1 Cartel (Article 11) 1 Territory Cartel (Article 9) 1 Price Fix ing (Article. 5, 6, 7, ) Monitoring of Business Actor Amount Year

7 Competition Advocacy 1

8 Amount Year Advice and Recommendation to Government Advised industry mostly strategic industries that has potential imct on people s welfare. This will involved port services, oil and gas, transportation, broadcasting, telecommunication, retail/distribution, and agro industry. Advice and recommendation was performed selectively, thus resulted on the varieties number for years. Generally, correlated to the increase quantity and quality of resources, number of advice is raised significantly for two recent years. 1

9 Effective : Government Policies had chand based on KPPU s advice Not Effective: Government has not made appropriate chans in their policy as recommended by KPPU 15 KPPU already issued (eight) Guidelines on : Article and 9 of Law No.5/1999 concerning Pre- Notification of Merr, Acquisition and Consolidation. Article 5 point (b) of Law No.5/1999 concerning Franchise Agreement. Article 5 point (b) of Law No.5/1999 concerning Intellectual Property Right. Article 1 point of Law No.5/1999 concerning Relevant Market. Article 7 of law No.5/1999 concerning Administrative Sanctions Article 51 of Law No.5/1999 concerning Monopoly exercising of State Owned Enterprise Article 5 point (a) of Law No.5/1999 concerning Agreements and Business Conducts Regulated by Law 16

10 Institutional Development 17 Internal External New Code of Conduct for Commissioner and Secretariat New Rule of Manament New Organization Structure and Work Order of KPPU Secretariat New guidelines Recruitment of Expert Group New Commissioner Regulation regarding Case Handling Procedures Presidential decree No. / to increased legal certainty for the status of KPPU s secretariat Serated budt account to increase budt independency and apply performance based manament Encouraging dissemination of international best practices for national development to support fair competition and regulatory reform process International peer reviewed by APEC and UNCTAD in 9 1

11 Chairman Commissioner Secretariat of KPPU Commissioner s General Affair Bureau of Internal Auditor Bureau of Law Enforcement Bureau of Competition Policy Bureau of Public Relations Bureau of Administration Local Office of KPPU Report Handling Division Industry Division Information Technology Division General Affair Division Filing and Case Handling Division Regulation Division Advocacy Division Planning & Budting Division Decision Monitoring & Litigation Division Legal Infrastructure Division Publication Division Finance Division Merr Division Monitoring Division Institutional Cooperation Division Human Resource Division 19 Domestic Cooperation International Cooperation Government, Law Enforcer, University, State Ancy Competition Ancy, International Organization, donor To create harmonization of national competition policy; To enhance law enforcement effectiveness ; To strengthen institutional cacity

12 Bilateral Regional Multilateral South Korea Jan Germany Australia Taiwan USA ASEAN APEC East Asia AANZ OECD International Competition network (ICN) UNCTAD Technical assistances Membership Chairmanship Hosting country Membership Observer Peer reviewed country 1 KPPU conducts Domestic Cooperation with several government dertments and institutions Up to 9, KPPU has already signed MoUs with: 1.KPK (Corruption Eradication Commission),.Depkominfo (Communication and Information Dertment),.BPS (National Statistics Ancy).BAPPEPAM (National Investment Ancy) KPPU is currently in the process of legalizing cooperation with: Indonesia National Police, BPK (Indonesia Audit Board Ancy), several National Universities, LKPP (Public Procurement Ancy)

13 Law amendment Other guidelines Competition index Future Development New case handling procedure Merr enforcement